Stock Prices

By: Madison Weaver, Trent Armstrong, Alex Fuselier

Stock Prices

By: Madison Weaver, Trent Armstrong, Alex Fuselier

Before the Crash

After World War 1, the country was enthusiastic and lively. They were optimistic in buying stocks and thought that investing would give them a promised profit. Stock prices began to rise because of the frequent buying. From 1920-1929 stocks more than quadrupled in price. Nearly every family in America had a share in some form of stocks. Everyone investing in stocks were making fortunes. The stock market boom changed the way investors viewed the stock market. It was no longer a long term investment. Most people who invested were common poeple.

Beginning of the Crash

The spike in stock prices began shooting up in 1925. On March 25, 1929 the stock market suffered a mini crash, which foreshadowed what was to come. Panic swept the country as margin calls were issued. Banks promised they would stay open and keep lending, but they had little money to back it up. One reason stock market prices declined in 1929, was because of the consistent increase in stock value. People over speculated the stock prices and heavily bought on margins buying which also led to the crash. Even many companies and banks placed money in the stock market. The problem with the banks was that thye placed customers' money in the stock market without their knowledge.

The Crash

On Black Thursday, October 24, 1929, stock prices fell dramatically. This was because huge amounts of people were selling their stocks and margin calls were issued out. Large groups of people across the country watched the ticker as the numbers it spit out spelled out their doom. On Black Thursday 12.9 million shares were sold, double the previous record. Later that day, a group of men invested money back into the stocks trying to relieve the fall. Their willingness to invest their own money in the stock market convinced others to stop selling. The recovery was amazing and many people were again buying stocks at what they thought were bargain prices. But, just 4 days later, the stock market fell again.

1929 Stock Market Crash

After the Crash

The stock market crash of 1929 led to a major economic crisis known as the Great Depression. Franklin Roosevelt came into office and forced banks to back up the money they were lending out with documentation. Therefore, he made banks more accountable for their credits. This was a painful thing at the time, but in the long run it was what was best for the country.

Men waiting in lines for hours to receive their only meal of the day which consisted of bread and water.